Legal & General PLC’s strong position in the growing UK bulk annuity market continues to be overlooked by the market, according to Citigroup.
“Management has consistently delivered double-digit EPS and strong DPS growth, yet this is not fully reflected in the shares.”
As the business model matures, LGR [reinsurance] is close to self-funding and LGC, its alternative asset platform, is now a larger and growing part of the group.
The next phase of the story is unlocking this value, said Citi, which includes demystifying LGC through progressive disclosure to more aggressive measures such as potentially selling minority stakes in LGC or LGR.
The target goes up by 12% to 336p, with the investment recommendation still a buy.
Shares rose 1% to 284.1p.